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Solana Prices Are Falling–Should You Buy or Avoid?
Solana cryptocurrency is in free fall. Should you invest in it or stick with the Purpose Ether ETF?
Solana (SOL) has dropped 45 percent in the last month, falling from US$174 on December 30 to US$94 on Sunday. There were no specific catalysts to explain the period's bearishness in SOL. January was a rough month for the markets in general, with stocks and cryptocurrency both plummeting precipitously. The NASDAQ fell 13% in the first 28 days of January, and crypto fell even more. For the month of January, Bitcoin fell by 19%. Solana appears to have fallen primarily as a result of worsening sentiment towards the markets as a whole. Cryptocurrencies are all correlated with one another, and have recently been correlated with tech stocks as well. As a result, it's not surprising that Solana sold off in January. The asset class to which it belonged was also liquidated.
That still begs the question:
Is Solana a good investment?
Solana is a cryptocurrency with numerous built-in benefits. It is one of the most talked-about cryptocurrencies, thanks to its fast transaction times, low fees, and active developer community. It is currently the seventh largest cryptocurrency by market cap, and fifth if stable coins are excluded. So, on paper, it appears to have a lot of potential. Is that enough to convince you to buy it?
The benefits of Solana
Solana has several advantages over other cryptocurrencies that may make it appealing. These are some examples:
* Rapidity.
* Low "gas" costs.
* The ability to build smart contracts.
Because of the benefits listed previously, Solana has frequently been compared to Ether (ETH), a cryptocurrency that offers some of the same benefits as Bitcoin. Indeed, among its supporters, Solana is frequently referred to as a "Ethereum killer." However, there is one obstacle it must clear if it is to legitimately claim that title.
ETH will quickly catch up
One issue with Solana at the moment is that its transaction time advantage will not last long. Ethereum developers are currently working on a series of enhancements that will allow for "thousands of transactions per second." The official documentation does not specify how many transactions will be permitted, but some online sources put the figure at 100,000. That would outperform Solana's current transaction rate of 65,000 per second, eroding the main advantage it has over Ethereum.
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By Crypto PiratesSolana cryptocurrency is in free fall. Should you invest in it or stick with the Purpose Ether ETF?
Solana (SOL) has dropped 45 percent in the last month, falling from US$174 on December 30 to US$94 on Sunday. There were no specific catalysts to explain the period's bearishness in SOL. January was a rough month for the markets in general, with stocks and cryptocurrency both plummeting precipitously. The NASDAQ fell 13% in the first 28 days of January, and crypto fell even more. For the month of January, Bitcoin fell by 19%. Solana appears to have fallen primarily as a result of worsening sentiment towards the markets as a whole. Cryptocurrencies are all correlated with one another, and have recently been correlated with tech stocks as well. As a result, it's not surprising that Solana sold off in January. The asset class to which it belonged was also liquidated.
That still begs the question:
Is Solana a good investment?
Solana is a cryptocurrency with numerous built-in benefits. It is one of the most talked-about cryptocurrencies, thanks to its fast transaction times, low fees, and active developer community. It is currently the seventh largest cryptocurrency by market cap, and fifth if stable coins are excluded. So, on paper, it appears to have a lot of potential. Is that enough to convince you to buy it?
The benefits of Solana
Solana has several advantages over other cryptocurrencies that may make it appealing. These are some examples:
* Rapidity.
* Low "gas" costs.
* The ability to build smart contracts.
Because of the benefits listed previously, Solana has frequently been compared to Ether (ETH), a cryptocurrency that offers some of the same benefits as Bitcoin. Indeed, among its supporters, Solana is frequently referred to as a "Ethereum killer." However, there is one obstacle it must clear if it is to legitimately claim that title.
ETH will quickly catch up
One issue with Solana at the moment is that its transaction time advantage will not last long. Ethereum developers are currently working on a series of enhancements that will allow for "thousands of transactions per second." The official documentation does not specify how many transactions will be permitted, but some online sources put the figure at 100,000. That would outperform Solana's current transaction rate of 65,000 per second, eroding the main advantage it has over Ethereum.
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